Boston, MA 03/14/2014 (wallstreetpr) – Williams-Sonoma, Inc. (NYSE:WSM) was probably moving skyward because of its latest attractive earnings data. But now is the time to known that beating sales figures in the just reported fourth quarter was just one of the reasons the stock acquired wings. The other reason is that the company has released very strong sales outlook for the current fiscal year.
As concerns fourth quarter results, the company which deals in home specialty products announced 10 percent sales increase to 41.47 billion. That figure managed to beat the estimate of $1.43 billion that analysts had modeled. The strong sales figure was however helped by the spike in comparable brands which went up 10.4 percent. The effect of the strong sales growth was also felt in the earnings column which improved to $1.38, thus exceeding the consensus estimate of $1.36.
A rewarding holiday season
According to the management led by chief executive Laura Alber, the company’s strong performance can be traced to its holiday season sales that outperformed the retail industry. Thus, the company was not only able to gain significant market share, but also ended up confirming the strength of its business model.
Sales forecast
Williams-Sonoma, Inc. (NYSE:WSM) has issued sales forecast for the current fiscal year that has topped analysts’ projection by smart margin. The company expects that its same-store sales will increase in the range of 5 – 7 percent. However, that compares with analysts’ same-store sales growth projection of 3.7 percent – almost half of the company’s top expectation.
In order to issue such an optimistic sales prediction, the management of Williams-Sonoma, Inc. (NYSE:WSM) is looking at the recovery in the U.S. housing market which is motivating acquisition of home improvement products.
And besides the generally looking bullish industry, CEO Laura Alber stated that they are winning in their efforts to fend off competition from online retailers through exclusive merchandise. In fact, that is what was responsible for the strong fourth quarter sales and it is going to continue working in favor of the company.
Conclusion
Shares of Williams-Sonoma, Inc. (NYSE:WSM) last changed hands at $64.74, up 9.78 percent.
